FAQ About
Selling Your House by Lease Option

by Matt Bowman

Matt Bowman has given us permission to republish his News Group post here.

Posted by Matt B on March 28, 2000 at 11:07:26:

I was inspired by B.L. Renfrow's and Russ Sims' posts earlier concerning that fact that they have a FAQ sheet that they give to tenant buyers about the lease option. I asked B.L. Renfrow to fax me his sheet, and then started thinking that a Q&A sheet like that would come in very handy for sellers as well.

I hear the same questions from sellers so many times that I thought it might be a good idea to give them a sheet to look over to reinforce what I am telling them. It also helps me look even more professional to have something like that with my company logo on top.

Well, I've pasted it below, and would like some feedback as to what everyone thinks. Are there any other questions anyone can think of that they hear on a regular basis from sellers? Is this a good idea, giving sellers a sheet like this? What do you think?

Here it is....

Frequently Asked Questions About Selling Houses on Lease Options

Q What are the benefits of selling my house on a lease option?

A When PA Home Solutions, Inc. lease options a house, we guarantee in writing that all maintenance, repairs, taxes and insurance will be paid by us while we are selling your house to a sub-tenant/buyer. PA Home Solutions, Inc. only deals with high quality people who are looking to buy, not just rent a house. When you sell your house by lease option, PA Home Solutions, Inc. handles all the marketing of the house. This includes paying for advertising, screening potential tenant/buyers, and showing the house. We want the process of selling your home to go as smoothly as possible, with no more headaches for you caused by buyers who tell you that they want the house, but end up not being able to qualify for financing. You are also relieved of having to pay double mortgage payments in the event that you have to move before you are able to get a buyer for your home. In short, PA Home Solutions simplifies the process of selling your home by handling all the details that waste so much of your time and money.

Q What are the advantages of selling my home by lease option over listing it with a Realtor?

A PA Home Solutions, Inc. makes your monthly payment while a sub-tenant/buyer is qualifying for a loan. All your expenses related to the house are taken care of. Try getting a Realtor to do that while listing your home! Another advantage is that PA Home Solutions is only interested in putting high quality tenant/buyers in the house since we make our profit by selling for higher than we buy. Since we guarantee all maintenance on the house, it is in our best interest to ensure that our tenant/buyer will take care of the home and eventually secure financing to cash you, the seller, and us out. This means that we put our tenant/buyers through an intensive pre-screening process before they are even permitted to look at the house. We don't just work for commissions, we have a vested interest in the house, and making sure that it gets sold.

Q How long does it take before your tenant/buyer cashes me out?

A That can depend on a number of different factors. We work with many mortgage brokers that are usually able to get most people financed after they have paid for 6 months on the lease option. Since everyone’s credit history varies, that time period can be shorter or longer for the tenant/buyer that we eventually put into the home, so we cannot guarantee when our tenant/buyer will secure new financing. However, until our tenant/buyer qualifies for financing, we continue to pay all the expenses related to the house. It is also in our best interest to get our tenant/buyer a new loan, since that cashes us out as well, so we work aggressively to get our tenant/buyer financed as soon as possible.

Q Why don't I just sell the house myself?

A That is always an option that is available to you. The difference would be that you are responsible for your monthly payment, your taxes, insurance, and any maintenance or repairs that the house needs while you are trying to sell it. You then need to try to find someone who can actually qualify for financing, wait for them to get approved, and hope that they don't pull out of the deal, making you start the whole process over again.

Q Why don't I just find my own tenant/buyer to put in the house?

A If you have the expertise to screen potential tenant/buyers, check references, know what sort of credit scores will allow someone to be able to be financed, deal with maintaining your home while someone else lives in it, work with mortgage brokers to get them financed, and finally set up a closing, then finding a tenant/buyer on your own would be a viable option for you. If you lack the expertise in any of these areas, we are able to help.

Q What if your tenant/buyer doesn't buy the house?

A Our tenant/buyers are carefully pre-screened to ensure that they want to buy the house, and are able to buy it at some point in the future. However, circumstances can change in someone’s life, such as an unexpected job transfer, that make it necessary to move. In situations like that, we continue to pay all the expenses for the house, while we find another qualified tenant/buyer to put into the home.

It is our goal to ensure that the process of selling your home is a smooth and easy one for you. We strive for a win-win-win situation in all our lease option deals. You, as the seller of the house, win by receiving the assurance of knowing that while the house is being sold, all of the expenses are taken care of, and the house is maintained. Our tenant/buyer wins by getting to own a home in a shorter amount of time than it would take them if they were trying to buy conventionally, as well as being able to immediately occupy their new home, while qualifying for a loan. We win by profiting from the sale of the home, as well as gaining 2 more satisfied customers. The reason that we are in business is, of course, to make a profit, as well as use our expertise in real estate transactions to assist home buyers and sellers in making the sale or purchase of their home an easy one.